Biden Extends “Buy American” Law to Federal Agencies, 60% of Products Made in USA

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  • President Biden expands rules allowing federal agencies to purchase products made in the United States.
  • Biden expects an immediate 55% to 60% increase for products made in the United States in federal government contracts.
  • Biden wants to increase the figure further to 75% in the future, the White House said.

President Joe Biden wants federal agencies to immediately increase the share of products made in the United States in their supply contracts.

The White House announced in an information sheet on Wednesday that government agencies should ensure that 60% of the products they buy with taxpayer dollars are made in the United States.

Currently, federal agencies are required to Buy American Law purchase products where at least 55% of the components are made in the country.

But the Biden administration is seeking an “immediate increase” to 60% and plans to raise the threshold further to 75%, the fact sheet says.

The threshold would rise to 75% in stages by 2029, Reuters reported.

Factsheet Adds Details to Biden decree signed in January, which aimed to harness the enormous purchasing power of the U.S. government to promote products made in the U.S. by toughening federal procurement rules.

Under the new rule, federal agencies would also have to report total U.S.-made content for certain purchases, rather than certifying that they meet the threshold, according to the backgrounder.

The fact sheet also stated that raising the threshold “would create more opportunities for small and medium-sized manufacturers and their employees.”

Read more: How Biden’s “Made in America” ​​Executive Order Directs More of the Government’s $ 600 Billion Purchasing Power to American Small Businesses

The president is expected to discuss the proposal on Wednesday at the Mack Trucks plant in Pennsylvania, where he will meet with local union members and receive a briefing on the company’s new EV garbage truck, Jen Psaki, press secretary for the White House, said Tuesday.

Biden will stress “the importance of American manufacturing, [and] buy products made in America, ”Psaki said.

The US government spends $ 600 billion annually, nearly half of which is used to purchase products. The White House said.

Interested parties have 60 days to comment on the proposed rule before it is finalized, unnamed officials told Reuters.


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